Taxpayers with negative networth now qualify
Taxpayers with negative networth now qualify for tax amnesty (RMC 90-07)
Taxpayers in a deficit position (negative networht) are now qualified to avail of the tax amnesty provided that they declare an increase in networth or a reduction in the reported deficit and pay the amnesty tax. This was introduced as an amendment to Q-28 of RMC 69-2007.
However, if the taxpayer who is in a deficit position does not declare an increase in networth, he cannot qualify for amnesty availment.
This change in BIR position came about as a result of clamor from taxpayers who wish to avail of the amnesty with good intentions to straighten out their tax records. This is also expected to benefit companies under dissolution and which need to secure the required BIR tax clearance.
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